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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (17825)	5/2/1998 4:07:00 PM
From: William H Huebl	Read Replies (1) \| Respond to of 94695

Thanks Haim, I'll remember that! Bill

To: Haim R. Branisteanu who wrote (17825)	5/5/1998 11:48:00 AM
From: Chip McVickar	Read Replies (2) \| Respond to of 94695

Hello Haim On the post that I am responding too (3 days old) you mentioned your dislike for index options and playing against the casino with shortterm options and about using spreads and butterflies. I'd like to open a question on how best to hedge a portfolio of stocks that have been held for years...Best way to hedge a portfolio against potential declines of say over 15-25%..... So far about the best way has been buying options well out of the money and far out in time.....these have been considered conservative and relatively safe. Leap puts on say GE jan 2000 strike 90 are selling for 11.25 Leap puts on DJ Index Dec 2000 strike 98 are selling at 10.875 DJX puts for Dec 10000 are at 10.50 All of these are expensive...atleast with the GE Leaps you would get the stock. Many of us have held stocks throughout many these years of growth...are not actively trading the markets and are reluctant to take the capital gains hits....only to find our stocks going up another 15% after the sale. What is your opinion on conservative hedging..? Is it worth rolling-over these conservative option positions....is there a better strategy or index to follow..? Anyone else's input would be most welcome. Thanks Chip